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Employment contracts: not just about compensation

When a professional is taking on new employment, what compensation they are entitled to in connection to their new job can have major implications for their financial situation and other aspects of their life. Thus, when it comes to an employment contract for a new job, a professional's attention may be particularly drawn to the terms of the contract regarding compensation.

However, compensation terms are far from the only terms of an employment contract that can have significant implications for a professional. Employment agreements can have terms covering all manner of major things such as:

  • The rights of, responsibilities of, authority of and restrictions on a professional during the course of the employment.
  • Issues regarding the end of the employment. This can include things like the conditions under which termination is allowed.
  • Whether the professional will be subject to restrictions after the employment ends. Employment contract provisions like confidentiality agreements and non-competition agreements can put post-employment restrictions on a person.
  • What happens if disputes arise in connection to the employment relationship. Agreement terms like arbitration terms and choice of law terms can have big impacts in the event a dispute comes up over the employment relationship.

So, when it comes to employment contracts, it can be important to not get tunnel vision and just focus on one class of terms, like compensation terms, but to give proper attention to all of the contract's terms, given the wide range of very impactful terms employment agreements can contain.

Skilled employment contract attorneys can provide executives and professionals with employment contract review and negotiation help aimed at ensuring they understand the full impacts a given proposed employment contract could have and helping them negotiate the right employment contract for their situation.

Source: FindLaw, "Employment Contracts and Compensation Agreements," Accessed April 25, 2016

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